Coast Mountain Power Corp.
TSX VENTURE : MW

Coast Mountain Power Corp.

January 13, 2006 15:11 ET

Coast Mountain Power Corp.: Forrest Kerr Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 13, 2006) - Clifford Grandison, President of Coast Mountain Power Corp. (TSX VENTURE:MW), reported that Bechtel Canada Company and Coast Mountain Hydro Corp. continue to advance the services set out in the Technical Services Agreement between the Company and Bechtel Canada Company originally scheduled for completion on October 22, 2005.

Coast Mountain Hydro Corp. and Bechtel Canada Company are working to expedite the completion of Volume Three of the Technical Services Agreement report, which includes project costs, estimates and assumptions, schedule and a pro forma term sheet for Bechtel Canada Company's engineering, procurement and construction of the intake and powerhouse structure work. Several issues, including the robustness of the construction market in British Columbia, the ability to secure subcontractor interest and firm material pricing have caused delays in the completion of Volume Three.

Although this delay will impact Coast Mountain Power Corp.'s plan to develop the Forrest Kerr project; the Company continues to advance the Forrest Kerr project to the maximum extent possible pending delivery of the outstanding documents.

The Company is currently reviewing Volumes One and Two, which contain the engineering, design and project specifications submitted by Bechtel Canada Company and is in discussions with Bechtel's senior management to bring the Technical Services Agreement to a conclusion.

Coast Mountain Power Corp. is pleased to announce the launch of their new website, www.coastmountainpower.com.

About Coast Mountain Hydro Corp.

Coast Mountain Hydro Corp., a wholly owned subsidiary of Coast Mountain Power Corp., is developing the Forrest Kerr Hydroelectric Project located on the Iskut River near its confluence with Forrest Kerr Creek, in northwestern BC. The project will have an installed capacity of 112 MW, and includes the development of a 178 km, 138kV AC transmission line to deliver the power to the BC Hydro grid at Meziadin Junction. Power generated from the project is sold under a 15-year electricity purchase agreement with BC Hydro for the delivery of 540GWh of electricity on an annual basis.

ON BEHALF OF THE BOARD OF DIRECTORS

COAST MOUNTAIN POWER CORP.

Clifford Grandison, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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